Southern Copper Corporation Announces Unaudited Consolidated Earnings and Production Results for Fourth Quarter and Full Year Ended December 31, 2016; Provides Production Guidance for the Year 2017 and 2018
February 01, 2017 at 04:59 pm EST
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Southern Copper Corporation announced unaudited consolidated earnings results for fourth quarter and full year ended December 31, 2016. For the quarter, the company reported net sales of $1,398.9 million, operating income of $470.5 million, income before income tax of $378.6 million, net income of $172.3 million, net income attributable to SCC of $171.9 million, net income attributable to SCC common shareholders - basic and diluted of $0.22, net cash provided by operating activities of $287.2 million compared to the net sales of $1,254.6 million, operating income of $187.4 million, income before income tax of $108.1 million, net income of $62 million, net income attributable to SCC of $60.8 million, net income attributable to SCC common shareholders - basic and diluted of $0.08, net cash provided by operating activities of $62.7 million for the same quarter a year ago. The fourth quarter 2016 EBITDA was $629.3 million. That is 90.6% higher than the fourth quarter 2015 EBITDA of $330.1 million.
For the year, the company reported net sales of $5,379.8 million, operating income of $1,564.2 million, income before income tax of $1,256 million, net income of $778.8 million, net income attributable to SCC of $776.5 million, net income attributable to SCC common shareholders - basic and diluted of $1, net cash provided by operating activities of $923.1 million compared to the net sales of $5,045.9 million, operating income of $1,414.4 million, income before income tax of $1,189.2 million, net income of $741.1 million, net income attributable to SCC of $736.4 million, net income attributable to SCC common shareholders - basic and diluted of $0.93, net cash provided by operating activities of $879.8 million for the previous year. Capital investments were $1,118.5 million in 2016. This is 2.7% lower than the amount invested in 2015, and this represents 144% of net income.
For the quarter, the company's total copper production was 227,733 tons against 221,900 tons a year ago. Molybdenum Mined was 5,279 tons against 5,993 tons a year ago. Zinc Mined was 17,110 tons against 16,434 tons a year ago. Zinc Refined was 27,436 tons against 29,089 tons a year ago. Silver Mined was 4,075,000 ounces against 3,559,000 ounces a year ago. Silver Refined was 3,793,000 ounces against 3,877,000 ounces a year ago.
For the year, the company's total copper production was 917,790 tons against 769,060 tons a year ago. Molybdenum Mined was 21,736 tons against 23,347 tons a year ago. Zinc Mined was 73,984 tons against 61,905 tons a year ago. Zinc Refined was 106,093 tons against 100,576 tons a year ago. Silver Mined was 16,172,000 ounces against 13,288,000 ounces a year ago. Silver Refined was 15,196,000 ounces against 13,638,000 ounces a year ago.
For the year 2017, the company expects to maintain current production level of about 900,000 tons. The company expects to produce 16.6 million ounces of silver, about 2.5% higher than the 2016 production of 16.2 million ounces. This is mainly due to higher Buenavista and IMMSA production.
For the year 2018, the company will initiate production at the new concentrator of Toquepala and expect to be able to produce 972,300 tons of copper, continuing aggressive organic growth program.
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Companyâs mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
Southern Copper Corporation Announces Unaudited Consolidated Earnings and Production Results for Fourth Quarter and Full Year Ended December 31, 2016; Provides Production Guidance for the Year 2017 and 2018